The Company distributed to holders of its common stock as of the close of business on November 13, 2009, transferable subscription rights to purchase an aggregate of 225,000 shares of Series B Convertible Preferred Stock at a subscription price of $10.00 per share. Shareholders were issued 1 transferable right for each share of common stock held on record date. Each four (4) subscription rights will entitle the holder thereof to purchase one share of common stock at the subscription price of $10.00 per share and carries with it a basic subscription privilege and an over-subscription privilege. The rights offering expires at 5:00 p.m., Eastern Standard Time, on December 21, 2009, unless extended.

The Company also reminds shareholders that on December 4, 2009, the terms of the Series B Preferred Stock were amended, and each share of Series B Preferred will be convertible into shares of our common stock at a conversion ratio of seven (7) shares of common stock for each share of Series B Preferred held at the time of conversion, representing an initial conversion price of $1.43 per share, which is subject to adjustment.

The Company intends to offer any shares of Series B Preferred that remain unsubscribed (after taking into account all oversubscription rights exercised) at the expiration of the rights offering to the public at $10.00 per share of Series B Preferred.

If you are a beneficial owner of shares of our common stock whose shares are registered in the name of a broker, custodian bank, or other nominee and wish to participate in the rights offering, you must instruct your broker, custodian bank or other nominee to exercise your rights and deliver all documents and payment on your behalf. Your broker, custodian bank or other nominee will instruct you as to the steps required to exercise your rights and may require you to act before the expiration of the rights offering in order to timely submit payment and other documents on your behalf. Your subscription rights will not be considered exercised unless the subscription agent receives from your broker, custodian, or nominee, as the case may be, all of the required documents and your full subscription price payment before the expiration of the rights offering. Holders of record must complete the appropriate subscription rights certificates and submit them directly to the subscription agent with the proper payment.

Shareholders needing assistance in participating in the rights offering should contact MacKenzie Partners, the Information Agent for the Company at 800-322-2885 (toll-free) or (212) 929-5500 (call collect).

Reed’s, Inc. makes the top selling sodas in natural food markets nationwide and is currently selling in 10,500 supermarkets in natural foods and mainstream. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks.

In addition, the Company owns the top selling root beer line in natural foods, the Virgil’s Root Beer product line, and the top selling cola line in natural foods, the China Cola product line. Recently, Reed’s added the Sonoma Sparkler brands to its line, a celebration drink with an established customer base. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams.

Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. For more information about Reed’s, please visit the company’s website at: http://www.reedsgingerbrew.com or call 800-99-REEDS.

Some portions of this press release, particularly those describing Reed’s goals and strategies, contain “forward-looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed’s is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed’s, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed’s that they will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-KSB and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed’s undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.